MODULE 5 MARKETING APPLICATIONS

34.1 DIRECT MARKETING

Direct marketing has several forms. The major ones are:

Mail Order Marketing/Catalogue Marketing

Direct Mail Marketing
Direct Response Marketing
Database Marketing
Telemarketing
Teleshopping (Home Shopping)
Online Marketing/Marketing on the Web

DM has so many forms essentially because it incorporates a variety of

media/tools. Corresponding to the specific media/tools used, specific
forms of DM have emerged.
For ex, in direct mail marketing, which is one major method of
marketing in DM, customized mailing through carefully developed
databases & mail-merge facility of word processing is the
medium/tool used. It provides one way of reaching a mass of customers
individually.
In telemarketing, which is another form of DM, the phone is the
medium/tool used. Catalogue marketers use the catalogue as the tool.
All these direct marketing methods basically do the same thing; they
gather customer names & sell their products direct to them.
While in the earlier days, direct marketing tools were confined to the
mail & the phone, today DM uses newer tools such as computers & the
Internet for reaching prospects/customers individually.
The newer tools actually permit more effective & more sophisticated
direct marketing. Their availability at a reasonable cost has
substantially enlarged direct marketing opportunities.
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34.2 MAIL ORDER MARKETING/CATALOGUE MARKETING
Mail Order marketing (MOM)/Catalogue Marketing, also known as Mail
Order Business (MOB), is one of the well-established methods of DM.
since many mail order marketers use catalogues for communication
with the consumer; this form of marketing is often referred to as
catalogue marketing.
Otto Burlington: Burlington is an established MOB. Burlington markets
a wide range of products through this method. It is now expanding its
business & is also planning a video catalogue.
First Mail Order Company: First Mail Order Company has been
focusing on customers in the smaller cities, people who have the money
but do not have the access to products.
Anjali Textiles: Mail order marketing is resorted to even to products like
textiles. Anjali Mills, Bangalore, for ex, has been marketing a
substantial part of its saris through mail order. It advertises through the
print media & substantial catalogues to those who evince interest in
mail order purchases.
Other Examples: Mothercare India, another MOB, has set its target on
mothers who buy items meant for kids. A jeweler, Surat Diamond, is
also doing some MOB. It concentrates on credit card holders. Charagh
Din, the well-known shirt maker in Mumbai, is also sending out mailers
to prospective customers & does some business over the mail. Living
Media has been selling a large volume of its Music Today cassettes
through mail order.

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34.3 DIRECT MAIL PROMOTION/DIRECT MAIL MARKETING
Understanding the difference between direct mail promotion & direct
mail marketing is necessary.
When a direct mail campaign stops with the objective of generating
awareness & interest about the product in the minds of the target
customers, it is direct mail promotion. In other words, direct mail here
takes care of communication alone.
When the direct mail campaign encompasses the whole range of
marketing tasks including order booking, product delivery etc., it
becomes direct mail marketing. In other words, the extent to which the
mailing campaign decidees accomplish the marketing task whether it is
direct mail marketing.
Select List of Direct Marketing Outfits in India:
Direct Response, the DM subsidiary of Response India/Dick Shaver
O&M Direct Ogilivy One Worldwide, the DM division of O&M
Mudra Diversified, the DM division of Mudra Communications
HTA Direct, The DM division of HTA
FCB-Ulka (Direct & interactive) the DM division of Ulka
Greys Direct, the DM division of Grey Worldwide
Rediffussion DY&Rs Wunderman Cato Johnson (WCJ) network
AP Lintass Global Market Links
McCann Ericksons integrated communications network
Saatchi & Saatchi Direct, the DM division of Saatchi & Saatchi
Datamatics Direct, an independent DM network

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34.4 DIRECT RESPONSE MARKETING
Direct Response marketing (DR) is another expression that is
seen in DM. It is similar to, but not exactly the same as direct
mail marketing. What distinguishes direct mail marketing &
direct response marketing from each other is the
media/instruments used.
While direct mail marketing relies on mail, i.e. letters/mailers
for obtaining the response, direct response marketing uses
more instruments/media (including letters/mailers), like
telephone, radio, TV & computer.
Some direct response marketing campaigns, for example, rely
totally on TV infomercials (commercials which give
information about products, benefits & usage aspects).
Depending on the media used --- press, radio, TV & computer -- response is elicited by giving a contact address/phone
number/fax number. In the case of press, usually a coupon is
also attached to enable response.

Toll-free telephone numbers

Toll-free telephones too serve as a usual tool of direct response
marketing. Toll-free telephones help better ordering by the
customer, better dialogue between the customers & the
company & better service to the customer.
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34.5 DATABASE/TELEMARKETING
Database Marketing
Database marketing is also seen in DM. although all forms of
DM are database-driven, some experts treat database
marketing as a distinct form of DM.
Advantages of Telemarketing
Telemarketing facilitates personalized contact, though not
face-to-face contact with prospects. Compared to mass
marketing programs, it gives the marketer a better chance to
influence the prospects.
Second, it enhances marketing productivity by providing a
screening & selection facility through preparatory
conversations with the prospects. Those who are not at all
inclined are disposed off at the first tele-calls. One can thus
concentrate on select prospects.
Third, telemarketing is less expensive compared to most other
forms of selling. Moreover, it can be used in respect of
different types of products. While it suits industrial products &
services better, it suits FMCG too, especially, durables.

How does Telemarketing work?

Telemarketing is usually done through specific campaigns.
Contact is established with 00s prospects in a campaign that
normally runs through a few days. Several tele-callers are
hired for the tele-call operation.

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34.6 TELEMARKETING - CALL CENTRES
Call Center is the real operation theatre in telemarketing. The call
center usually has a manager in overall charge, a few supervisors & the
required # of tele-callers. Normally, the tele-callers are grouped into
teams of 6 or 7 callers, each supervisor handling one such team. The
tele-callers sit in front of a computer terminal & speak into their
headsets as telephone operators do in a telephone exchange.
Simultaneously, they access information on the terminal & add fresh
data on it as the tele-calling progresses.
The tele-callers are usually provided with a script with which they
practice the game. The script for the calls are worked out jointly by the
telemarketer & professional consultants hired by the telemarketer.
They are also pre-tested with a few prospects. The supervisor is always
available close at hand; she keeps track of productivity of her tam.

Planning & Preparation

Telemarketing campaigns need careful planning. The telemarketer
must be clear about the campaign its objectives, duration, expected
call traffic etc., The campaign should first be pre-tested on a small scale.
Many useful lessons can be learnt through the pilot project, which will
help improve the effectiveness of the campaign & help cut loss/wastage
that might otherwise affect the venture. Normally, an outside
professional agency is hired to be of help, as firms normally lack inhouse expertise in this area.
Meticulous preparation is very essential. The telemarketer has to build
a relevant database of potential customers & segment them
appropriately. Developing a precise list is indeed critical. It ensures
focused follow-up calls & also facilitates detailed analysis of the entire
process, including success rate of the operation. Preparation has to be
emphasized all the more because telemarketing being a relatively new
technique in India, there is a dearth of trained callers, good trainers &
professional consultants.
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34.7 TELESHOPPING/HOME SHOPPING
Teleshopping, alternatively known as home shopping, is one of the
relatively more recent editions of direct marketing. Here, the marketer
hawks the product on the air & the consumer watches it on his TV at
home, phones up the marketer & buys his requirement.

Benefits all the groups in the game

Benefits the customer: Shrinking leisure time on the part of the
consumers has contributed to the growth of teleshopping. The products
you see on the TV are just a phone call away; you get discounts as well is
the catchy slogan.
Benefits the manufacturer: Manufacturers are happy with the idea, as it
promotes their sales & reduce their costs. To them, teleshopping serves
as a good substitute for conventional marketing.
Benefits the marketer/teleshopping network: To the marketer, i.e., the
teleshopping network, it means a novel business activity that brings
sustained revenue. A teleshopping network corresponds to the
marketing channel in conventional marketing. It usually gets a good
distribution margin.
Benefits the TV channel: Teleshopping benefits the TV channel as well.
For TV channels, teleshopping is a new source of revenue. DD, for ex,
allowed its channel for teleshopping by Dees network on a profitsharing basis. DD gained a share from every item sold by the network.
TV channels, after all, depend on commercials for their income. They
naturally see teleshopping as an attractive source of income as it is
totally commercial.